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DECISION No

DECISION No.219/1999/QD-TTg OF NOVEMBER 11, 1999 ON THE POLICY FOR THE PROTECTION OF THE INTERESTS OF PEOPLE IN LOCALITIES WHERE MINERALS ARE EXPLOITED AND/OR PROCESSED AND THE PROTECTION OF UNTAPPED MINERAL RESOURCES

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the Minerals Law of March 20, 1996;

Pursuant to the State Budget Law of March 20, 1996;

Pursuant to the Law No.06/1998/QH10 of May 20, 1998 amending and supplementing a number of articles of the State Budget Law;

Pursuant to the Government�s Decree No.68/CP of November 1, 1996 detailing the implementation of the Minerals Law;

In order to protect the interests of people in localities where minerals are exploited and processed and protect untapped mineral resources;

At the proposal of the Minister of Finance,

DECIDES:

Article 1.- Organizations, households and individuals lawfully residing and engaging in production in localities where minerals are available, that have to change their residential and production places by decision of the competent agency for mineral exploitation and/or processing or for the protection of untapped mineral resources shall be protected and given conditions by the State for stabilization of their life and production in the new places.

Article 2.- The presidents of the People�s Committees of the provinces and centrally-run cities shall have to elaborate and decide socio-economic development investment plans of their respective localities where minerals are exploited and/or processed; protection plans for the stabilization of lives and production of organizations and individuals that have to change their residential and production places due to mineral exploitation and processing; and plans for the protection of untapped mineral resources (if any) in conformity with the provincial socio-economic development policies as well as the provisions of this Decision.

Article 3.- The interests of organizations and individuals in localities where minerals are exploited and processed shall be protected through the following major policies:

1. Organizations and individuals licensed to exploit and process minerals shall, beside combining the requirements of the mineral exploitation and processing activities with the infrastructure construction as well as the environmental, ecological and land protection and restoration in localities according to the approved feasibility study reports, have to:

- Pay compensation for damage caused to the land and assets affixed thereto of organizations and individuals that have to change their residential and production places due to mineral exploitation and processing in accordance with the law provisions on compensation for damage;

- Prioritize the employment of local laborers, especially those who have to change their residential places, in the mineral exploitation and processing activities as well as the relevant services.

2. Organizations and individuals lawfully using land where minerals are exploited and/or processed, that have to change their residential and production places due to mineral exploitation and processing, shall be allotted or leased land by the State in accordance with the provisions of the land legislation.

3. Production and/or business establishments that have to move to new production and/or business places shall be considered the newly-set up establishments and entitled to privileges under the law provisions on investment promotion.

Article 4.- A socio-economic development investment plan of the locality where minerals are exploited and/or processed shall have to include the following contents:

- Investment in the construction or upgrading and repair of infrastructure works in population quarters such as water supply and drainage systems, local traffic lines and electric supply network...;

- Investment in the construction or upgrading and repair of the local educational, medical and welfare projects like schools, medical examination and treatment establishments...;

- Investment in the new construction or upgrading and repair of economic-trade development projects like markets, commune clusters� centers, trade centers...;

- Investment in the elaboration of strategies, planning and plans for development of the local mineral exploitation and processing industry as well as the mineral use and business.

Article 5.- A protection plan for the stabilization of life and production of organizations and people in localities where minerals are exploited and/or processed that have to change their residential and production places shall, beside helping materialize the protection policies stipulated in Article 3, has to include the following contents (if any):

- Priority given to investment in infrastructures better than those in the old places;

- Measures to ensure the restoration and development of traditional crafts in line with the policy of developing the mining industry as well as the general socio-economic development policy of the concerned province;

- Measures to preserve and develop fine and healthy customs and practices of the people�s community that has to move to the new places;

- For new places in rural areas, it is necessary to work out measures to ensure the people�s re-sedentarization and re-settlement as well as the household economic development.

Article 6.- The plan on the protection of untapped mineral resources must ensure the realization of contents on the protection of mineral resources based on the set measures, and the work of protection of untapped mineral resources in accordance with the law provisions on minerals.

Article 7.- Where the elaborated plans greatly affect various aspects and domains of the general socio-economic development policy of the country, the presidents of the People�s Committees the concerned provinces and centrally-run cities shall have to submit them to the Prime Minister for consideration and decision.

Article 8.- The People�s Committees of the provinces and centrally-run cities shall have to estimate the funding for implementation of the socio-economic development investment plans of their respective localities where minerals are exploited and/or processed; plans on the protection and stabilization of life and production of organizations, households and individuals in areas where minerals are exploited and/or processed, that have to change their residential and production places; and plans on the protection of untapped mineral resources (if any) for each year. The fund for implementation of the said plans shall be included in the annual provincial budget estimate.

The planned expenditures shall be balanced with revenues from mineral activities, which the provincial budget is entitled to, and effected in strict compliance with the law provisions on financial management, accounting and statistical regime.

Where the budget of a province or centrally-run city has no revenue sources (or its revenue sources do not ensure the spending tasks) from mineral activities, but the locality has mineral resources which must be protected according to the provisions of the Law on Minerals, the planned expenditures shall be allocated or supplemented by the central budget according to the mineral resources protection plan. The allocation or addition of central budget fund to the provincial budget shall strictly comply with the provisions of the State Budget Law.

Article 9.- This Decision takes effect 15 days after its signing. The earlier provisions contrary to this Decision are now annulled.

Article 10.- The Finance Minister shall guide in detail the implementation of this Decision.

Article 11.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People�s Committees of the provinces and centrally-run cities and the heads of the relevant agencies shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI